The Dirt: RiverFront Conservancy scandal, land tax stalled and more Detroit takeaways from Mackinac

The Mackinac Policy Conference produced some interesting news last week: Voters are unlikely to see Mayor Mike Duggan’s tax policy plan this year, and Michigan Dems want to cut incentives to corporations.

Elsewhere, insiders estimate the amount of money missing from the Detroit RiverFront Conservancy could be an eye-watering $40 million. Yikes.

Not conserving dollars

The Detroit News’ Daniel Howes and Nolan Finley threw a turd in the proverbial punch bowl with their column last week about the potential embezzlement scandal brewing over at the Detroit RiverFront Conservancy. The column — which landed smack in the middle of the usually chummy, cheery Mackinac Policy Conference — claims someone may have embezzled a stunning $40 million (paywalled) over more than a decade. Neither an outside auditing firm nor the nonprofit’s CEO Mark Wallace reported the discrepancies to the board. Within 48 hours of the column’s publication the conservancy board fired Chief Financial Officer William Smith and replaced Wallace, who resigned. The FBI is investigating. (Detroit News, Detroit Free Press)

Tax plan stalled

Mayor Duggan’s proposed land value tax faces an uncertain future (paywalled). The proposal, which would lower property taxes on homeowners and raise them on vacant land and underbuilt properties, requires the Michigan Legislature’s approval before it can appear on the citywide ballot. But state House leaders have not made the bills a priority, making it unlikely to reach voters this year, if ever. House Speaker Joe Tate said at the Mackinac Policy Conference that “there’s still life for” the proposal, but it would require a “very aggressive timeline” to be ready for the fall ballot. (Crain’s Detroit Business, BridgeDetroit)

Meat and potatoes on Lansing’s menu

More news from Mackinac: Michigan Democrats are looking to shift the state’s funding priorities from big handouts to corporations to initiatives that directly affect residents, like public transit and affordable housing. Gov. Gretchen Whitmer has based much of her economic agenda on development spending, but has signaled support for the change.

Critics have increasingly scrutinized the Strategic Outreach and Attraction Reserve Fund, the main funding source used to attract new projects to the state, for lack of oversight and failing to create many high-paying jobs. New bills in the Michigan House would still budget $250 million a year for 10 years to corporate incentives. But the legislation would also allow other annual expenditures: $200 million on transit and mobility projects, $100 million to build affordable housing, and $50 million on community projects, like improving community college access and childcare services. (Bridge Michigan)

Readying the runway

Coleman A. Young International Airport, commonly known as city airport, is getting major upgrades for the first time in decades. The city announced it has signed a 30-year lease agreement with longstanding operator Avflight, which will construct a new terminal and hangar. The lease will generate just under $99,000 a year (paywalled). The city recently completed other upgrades at the airport, including a $3.5 million runway renovation and $350,000 for LED lighting. (WDIV, Crain’s)

Development news quick-hitters

Detroit City FC is likely to tap subsidies to help build its new Corktown stadium (paywalled). But it will have to pitch its fans on the idea, many of whom are opposed to using tax dollars on development. (Crain’s)

The Horace E. Dodge and Son Memorial Fountain dazzled attendees of Movement Music Festival. The city spent $6.7 million on the futuristic Isamu Noguchi-designed fountain in Hart Plaza to fix its plumbing and add LED lights. (Metro Times)

The city is marketing 37 acres of the former Packard auto plant for development , preferably for a new auto manufacturing facility. The city expects to demolish the entire plant by the end of the year. (Detroit Economic Growth Corp., Freep)

The Dirt: RiverFront Conservancy scandal, land tax stalled and more Detroit takeaways from Mackinac · Outlier Media